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One of the most important things to consider before going all-in with a car coverage policy is the excess. Though there are lots of different things that you’ll want to consider before pulling the trigger, the excess ranks as the one that can most effect you down the road. There are many people who like to manipulate their insurance policy in order to get a lower excess, and this is certainly one option. You want to make sure that you are making a prudent decision before you go with a policy that has either a higher excess or a lower excess than is usual.
Defining the car insurance excess
Getting the definition out of the way early is important. When you get car insurance, you will have to agree on the voluntary excess. This is the amount that you agree to pay out of pocket in case a claim is filed. If no claim is filed, then the amount of the excess does not matter, as you won’t have to pay it.
The benefits of going with a higher excess
Some people choose to go with a higher car insurance excess, as they will get a lower monthly rate. This is a good way to get cheap car insurance if you have any of the following “problems” from an insurer’s perspective:
* If you are a young driver
* If you have been convicted of drink driving
* If you have been involved in many accidents
* If you have a history of driving citations
You can get lower car insurance quotes by agreeing to pay a higher excess. Some people do this and consider it a gamble. They recognize that it will cost them more when they get into an accident, but they believe that they can beat the odds. This is an especially good deal if there is something in your past that is hampering your ability to cheap insurance, but you have since changed and become a more responsible driver.
The downside of going with a higher excess
No matter if you are looking for cheap car insurance for young drivers or some other type of insurance, there is a risk to going with a higher excess amount. The risk is that you would have to have a significant amount of cash on hand to even file a claim. For people who don’t have a good amount of liquidity, this is a real issue. You could ideally save the money that would have been spent on higher insurance premiums, but this requires discipline and most people don’t have enough of that.
Likewise, this makes things more difficult if you want to file a small claim. Many accidents aren’t large enough and don’t cause enough damage to merit filing a claim if you have a large excess amount.
Ultimately, the decision is yours. As you compare the market, keep in mind what the different companies have to offer in terms of the excess. If you use a comparison site to get deals from more than 100 different companies and brokers, then you will be in much better shape.
Are you looking for great insurance coverage and the right excess amount? We can help you by providing more than 100 different companies and brokers.
